Weimar Republic Hyperinflation through a Modern Monetary Theory Lens

In this doc, we dispute the mainstream view that the inflation of the Weimar Republic was caused by a proactive expansion of the stock of money by the German government acting in concert with the Reichsbank. In part 1, we examine the source of the price level and causes of inflation, first from a neoclassical and then from an MMT perspective. In part 2, we analyse the Weimar hyperinflation. In part 3, we apply the insights of MMT to Weimar hyperinflation and present our alternative narrative.